Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Buffett buys 60% stake in Pritzker firm

Berkshire Hathaway to take full control of Marmon Holdings and its varied manufacturing interests within 6 years.

Subscribe to Companies
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

NEW YORK (CNNMoney.com) -- Warren Buffett's Berkshire Hathaway is paying $4.5 billion for a 60 percent stake in Marmon Holdings Inc., a privately-held conglomerate controlled by the Pritzker family in Chicago.

The acquisition was announced Tuesday by Buffett, the legendary investor who serves as chairman and chief executive of Berkshire Hathaway, and Tom Pritzker, chairman of Marmon. The deal is expected to close within the next three months.

Berkshire Hathaway (BRKA, Fortune 500) will take control of 60% of Marmon and acquire the rest of the company within six years, according to a joint statement.

Buffett noted "Marmon's impressive record of growth and profitability over the years."

Marmon comprises more than 125 manufacturing and service businesses in the energy, construction, transportation, engineering and other sectors in North America, the United Kingdom, Europe, China and elsewhere, according to the statement.

The companies said that Marmon's annual revenues total approximately $7 billion and that operating income more than tripled between 2002 and 2007.

The Pritzker family, whose businesses include the Hyatt hotel chain, has controlled Marmon since 1953.

Buffett has built Berkshire Hathaway into a massive holding company with interests ranging from underwear to private jets. Its 2006 revenues were $98 billion. Berkshire Hathaway's shares have outperformed the S&P 500 by more than two-fold since 1965.  To top of page

Photo Galleries
This is how far robots have come since the 1930s Are robots catching up to humans? Yes. Should we be scared? Find out! More
The median home price is $236,000. Here's what that buys you The median home price climbed to $236,400 in June, according to the National Association of Realtors. Here's what that will buy you across the United States. More
Sponsors